The average per-suite purchase cost of a typically older Vancouver rental apartment building is now $498,000, up 47% from mid-2015, according to a survey by Mark Goodman and David Goodman of HQ Commercial in Vancouver.
Across Metro Vancouver, the per-door price for a multi-family rental is now $380,000, up 60% from a year ago, the Goodmans state in their most recent Goodman Report.
The total number of rental suites sold in Vancouver is up 123% from the first half of 2015, at 1,443 units, in 124 buildings.
A recent Vancouver transaction reveals that some buildings are attracting even higher prices.
A 69-year-old, wood-frame rental apartment building at 2293 West 6th Ave. sold for $4.5 million, or $750,000 for each of the six units, where rents average $1,680 per month.
The price, while not a record for older rental apartments – a $1.1 million-per-unit sale at the University of British Columbia holds that distinction – is an indication of the stratospheric prices being seen in Vancouver’s multi-family sector.
The Kitislano building, configured into two-bedroom suites, sold after multiple offers for $50,000 above the list price, according to NAI Commercial, which sold the project. The capitalization rate is a low 2.1%.
The property was assessed in July 2015 for $2.9 million, with the value of the building at $199,000 and the land at $2.7 million.
